Lucara Diamond (TSX: LUC) reported a strong performance in the second quarter of the year, with significant increases in both sales and earnings.
This boost was largely driven by its revitalized supply agreement with Belgium’s HB Antwerp, which purchases and polishes rough diamonds from Lucara’s flagship Karowe mine in Botswana.
The Karowe operation generated $41.3 million in revenue, marking a 7% increase compared to the same period last year. Net profit surged to $11.4 million, more than double the $5 million recorded in the previous year.
The renewed agreement with HB Antwerp, which acquires all diamonds over 10.8 carats from Karowe, contributed notably to the revenue growth. Sales from this deal increased by 15% year-on-year, reaching $29.5 million.
Lucara differentiates itself from many competitors by producing a significant quantity of large, high-quality diamonds, whose prices have remained stable. In contrast, the market for smaller, lower-quality diamonds has been less favorable, according to the Canadian miner.
“These exceptional stones, combined with our innovative sales strategies, enable us to navigate current market conditions effectively,” stated William Lamb, CEO of Lucara.
Between March and June, Lucara recovered 206 special diamonds, defined as those weighing more than 10.8 carats. These diamonds accounted for 6.9% of the total carats processed from ore.
Noteworthy recoveries during the quarter included a 491-carat Type IIa diamond, a 225.6-carat Type IIa diamond, and a 109-carat Type IIa diamond.
Lucara also made significant progress on the underground expansion project at the Karowe mine. Production from this new section is anticipated to begin in early 2028, with the expansion expected to extend the mine’s operational life until 2040.
